Cross-border Ecommerce - The Paypers

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Read about payment methods and how to increase conversion by offering the most convenient online payment methods when selling goods online in Brazil

Domestic and Preferred Card Schemes
• Online payments in Brazil are dominated by Credit Cards and Boleto Bancário, accounting for more than 93% of all online purchases in Brazil.
• Credit cards are used in 69% of all online payment transactions. However, it is important to differentiate between national and international credit cards. National cards can only process in Brazilian Reais (BRL), whereas international credit cards can process in both foreign and local currencies. But, as only 20% of Brazilian buyers have access to international credit cards, it is key for merchants to have access to local credit cards.

Alternative Payment Methods
• The most important Brazilian payment method is the Boleto Bancário. This is a payment slip issued through banks with all the relevant information for purchasing a product. Boleto enables both payments through the customer’s bank account and cash payments.
• This payment method accounts, for around 24% of the market and within industries with higher ticket sizes, its relevance can reach up to 40% of all online purchases.
• There are also a variety of smaller, but still active payment methods:
• Co-branded Cards are used at select retailer while some can be used anywhere depending on the brand. They are issued by department stores (C&A, Renner, Marisa, Pernambucanas, etc.), grocery stores (Carrefour, Pão de Açúcar, Extra), drugstores and others.
• Débito Automático is Portuguese for Direct Debit, are only used for utilities payments (such as water, electricity, and telephone) because Brazilian banks generally only allow these companies to directly charge the bank accounts. Different payment providers have tried without success to offer it in ecommerce.
• E-financing is available at some banks, like Itaú, Bradesco, and Banco do Brasil. It is not as commonly used, since the bank requires the customer to have a pre-approved credit with the bank before the transaction.
• E-wallet service in Brazil is similar to what it provides in other countries. Both PayPal and MercadoPago allow users to store, or add money to their ‘virtual wallet’.
• Prepaid Cards are cards with limit normally used for payment of specific services (telephone and public means of transportation issued by public service concessionaires and meal cards which are authorized commercial establishments).

Read an in-depth overview (including sources) of card schemes, alternative payment methods, online payment methods in Brazil and how to increase conversion by using the payment methods in the downloadable country report.